Daily News

Loyalty360 Reads: March 14th, 2019

Walmart Discovers Challenges in Grocery Delivery
The retailer “was caught off guard after it began offering to deliver fresh groceries from a store in North Bergen, New Jersey, earlier this month, only to find orders flooding in from across the Hudson River. Drivers from DoorDash Inc. balked at paying the usual $15 toll to cross into Manhattan, store workers said. One driver was offered $11 to make the trip. Some orders were never filled.”

The brand’s executives believe maintaining relevance means competing with Amazon and the like. Offering a delivery service enables the brand to compete in convenience, but brands should take note of the hurdles Walmart encounters along the way.

Complications on the Way to a Cashless Future
As the use of alternate payment methods increases, particularly among younger consumers, some brands have opted to create cashless stores. Amazon Go stores are the best known. However, political leaders and others have voiced opposition to the movement. “The main issue seems to be the fact that at least 15.6 million people in the United States do not have a bank account according to the FDIC, and therefore, only deal with check cashing establishments and operate primarily in cash.” Brands need to meet customers where they are, and if they want to maintain brand favorability, they may want to consider waiting a while before experimenting with cashless stores.

Partnerships

How Kohl’s Quirky Deal with Amazon Saved the Brand
Kohl’s profits have exceeded expectations and its stock price is rising. This is in part because the brand partnered with Amazon back in 2017. Most strikingly, Kohl’s began accepting returns on Amazon products. Since then, the retailer has also boosted foot-traffic by leasing space to Planet Fitness.

Programs

Millennium Hotels & Resorts Launches New Loyalty Program
The brand has launched My Millennium Guest Reward Program. “The key features of the new My Millennium Guest Reward Program will include a member exclusive rate, better than through any other available channels; points double every 10 nights, equivalent of a free night for every 10 paid; celebration treats on birthdays and other special occasions; and an enhanced stay experience using My Points, available on the point of booking, such as room upgrades, discounted amenities and services, along with digital vouchers, immediately redeemable.” Notably, the program uses brand partnerships to offer exclusive experiences to members. This has been a growing trend in the hospitality space, and it should be effective in boosting loyalty for Millennium.

Data Security

Facebook Faces Criminal Probe for Data Deals
The social platform is under investigation for data deals it made with other companies. “These deals, which have mostly been discontinued, allowed people to access their Facebook accounts, or specific Facebook features, on platforms from other companies, including Blackberry and Windows Mobile phones.”